customer-segmentation-strategies

Vocabulary Word

Definition

'Customer segmentation strategies' are methods businesses use to sort their customers into groups. The groups are often based on similarities like age, interests or shopping habits. It helps businesses understand their customers better, tailor their services, and improve sales.

Examples in Different Contexts

In pricing strategies, 'customer segmentation strategies' allow businesses to set different price points for different segments based on their willingness to pay and perceived value. A pricing strategist might explain, 'Using customer segmentation strategies, we've developed a tiered pricing model that caters to both budget-conscious consumers and premium buyers, maximizing our market coverage.'

Practice Scenarios

Tech

Scenario:

As we prepare for the release of our new feature, it's crucial that we understand who our most active users are, and what they're trying to accomplish with our app.

Response:

Agreed, maybe we should refine our customer segmentation strategies to understand our active users better.

Retail

Scenario:

Our end of season sale is coming up. We need to maximize its impact among our most frequent shoppers.

Response:

Sure, we can use our customer segmentation strategies to identify our frequent shoppers and target them with personalized offers during the sale.